Heavy Duty Trucking

SEP 2014

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Trucking's Most Respected Business Report
28 HDT • SEPTEMBER 2014 www.truckinginfo.com
A
lthough its market share is not
increasing as rapidly as it had
expected, Navistar has made
significant progress in cutting
its warranty spend and other costs,
and as a result posted a positive
income number in its fiscal third
quarter, despite lower sales than
anticipated.
The company reported a net loss
of $2 million, or 2 cents per share,
on revenues of $2.8 billion. That
compares to a loss of $247 million, or
$3.06 per share, a year ago.
However, company officials are
emphasizing the fact that the company
achieved quarterly income from con-
tinuing operations before income taxes
for the first time since 2011, reporting
$21 million — that compares to a
$211 million loss in the same period
last year.
This is on revenue that was es-
sentially flat compared to the third
quarter last year.
The company has upped its
industry forecast for truck sales, even
as it remains behind in its market
share targets. The company's initial
prediction for Class 6-8 and bus
industry sales in the U.S. and Canada
for 2014 was 300,000-335,000, but
now it's projecting that number to be
330,000-340,000.
Officials just would like to have a
bigger part of that pie. The company
initially projected a 21% Class 6-8
market share for this year, up from
2013's 18%.
The actual numbers were 20% for
Class 6 and 7 and 14% for Class 8.
Medium-duty was down from 24%
a year ago and Class 8 remained the
same year over year.
"Clearly we're not where we had
anticipated being" as far as market
share, said Jack Allen, executive vice
president and chief operating officer,
in an investor conference call. "I think
a lot of that has to do with custom-
ers wanting to gain experience with
our new [selective catalytic reduction]
products before they increase the per-
centage of their buy in our favor."
– Deborah Lockridge,
Editor in Chief
hotline
Intermodal's busy summer
Has Navistar
turned the corner?
Navistar started customer
shipments in July of the first
International DuraStar and Work-
Star trucks with selective catalytic
reduction emissions technology.
The Georgia Ports Authority reported that
the Port of Savannah handled a record
among of container cargo in July, moving
293,889 twenty-foot equivalent container
units at Savannah's Garden City Terminal, a
19.2% increase over the previous year.
It was just a sampling of the busy
intermodal traffic story seen across the
country over the summer, with the American
Association of Railroads reporting that U.S.
intermodal volumes were up 8% in May,
7% in June, and 5% in July compared to
last year.
The Intermodal Association of North
America reported that the second quarter
saw the largest quarterly intermodal
growth since 2011.
Intermodal freight posted gains across
all segments. International containers
increased 9.6%, trailers improved by
4.3%, and domestic containers grew 7.6%
quarter-over-quarter.
"The second quarter results were indica-
tive of a rebounding economy and higher
than predicted import shipments," said
Joni Casey, president and CEO of IANA. "It
is also probable the harsh winter that re-
sulted in constricted first quarter capacity
contributed to the second quarter's strong
growth, by comparison."
Second Quarter 2014 Intermodal Volume Comparisons
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
4.3%
7.6%
6.9%
9.6%
8.2%
1,518,085
1,632,802
1,915,334
2,047,159
1,940,247
2,126,170
3,855,581
4,173,329
397,249
414,357
Trailers Domestic
containers
All domestic
equipment
ISO
containers
Total
2013
2014
PHOTO:
NAVISTAR
GRAPH:
INTERMODAL
ASSOCIATION
OF
NORTH
AMERICA